The Québec government is pulling some “strategic” levers for economic development in the north of the region with a $2.6 billion, five-year plan that includes initiatives around infrastructure investment and lowering costs for miners.
The most recent step the provincial government took was to grant $6.2 million in repayable assistance for the Matagami transshipment yard infrastructure upgrade project.
The move forms part of the broader Northern Action Plan 2023-2028 being coordinated by Société du Plan Nord.
The investment enables civil engineering works to be undertaken as well as facilitates the acquisition and installation of new railway equipment necessary to serve mining companies in the Nord-du-Québec region.
The upgrades to the Matagami transhipment yard are expected to enhance capacity, reliability and efficiency of transporting ore to markets.
The mining industry is also contributing to the development, with Rio Tinto (ASX:RIO) and Nemaska Lithium (TSX:NMX) committing $3 million to the site’s multi-user infrastructure.
Maïté Blanchette Vézina, Minister of Natural Resources and Forestry and Minister responsible for the Société du Plan Nord, says by providing rail service to emerging mining projects, particularly in the lithium sector, the government is making a real contribution to the development of the critical minerals industry
The Nord-du-Québec region is a key mining hub for Québec. According to the Government of Canada, more than 90% of mining investments are made in the Nord-du-Québec, Abitibi-Témiscamingue and Côte-Nord regions.
Nord-du-Québec ranks third, contributing 18.2%, or C$1.1 billion, to regional gross domestic product from its mining sector.
The Québec Mining Association says the region has a wealth of the resources needed for the energy transition and the mining industry makes a significant contribution to the region’s development.
Chris Ackerman, corporate development for lithium explorer Q2 Metals (TSX-V:QTWO), says modernising the Matagami transhipment yard is a very important and timely step toward further unlocking the potential for not only mining in northern Québec, but for economic development in general.
“Our flagship Cisco Lithium Project is just 150km north of Matagami, which is the current rail head for the Canadian National Railway which leads south to the port and processing centres, including those at Bécancour,” Ackerman tells Mining.com.au.
“More advanced mining, exploration and development companies in the region and further to the north envision trucking their products to Matagami for subsequent rail transport.
“Given our favourable location and proximity to the Billy Diamond Highway, this would be a logical scenario for Cisco in a future production scenario as well.”
Q2 Metals’ Cisco Project is the southernmost lithium project in the Eeyou Istchee Territory of the James Bay region, and is closest to Matagami.
The development is also expected to improve the economic prospects of projects in Nord-du-Québec.
Pivotal Metals (ASX:PVT) Managing Director Ivan Fairhall says many base metals projects are burdened with complicated logistics, which weigh heavily on project economics.
“To have such close proximity to rail slashes transport costs for access to North American smelters and deep water export ports,” Fairhall tells this news service.
“The fact that it is provided for users at no capital cost is a clear win for us. Enhanced project economics is the single most important factor in incentivising development capital.”
Pivotal’s Horden Lake Project is connected to a fully sealed and maintained highway, providing the company with a clear route to market for its copper and nickel concentrates.
Q2 Metals’ Ackerman says moving materials is a major part of the operational expense of a mining project.
“When that capability is underdeveloped or lacking, it can be very detrimental to overall project economics,” he says.
“The upgrades are focused on capacity, reliability and efficiency. This should help everyone in the region with their overall cost to transport, a critical part of the cost curve when working through feasibility.”
Ackerman says the “cherry on top” would be an extension of the rail line further north to serve more projects efficiently.
“The Eeyou Istchee James Bay region has the potential to be Canada’s version of what Western Australia is to lithium projects. Upgrades and investments like this will only help that potential,” Ackerman says.
The La Grande Alliance, which is a separate development plan for the Cree nation of the James Bay region, called for an extension of the railway line north of Matagami.
Pivotal’s Fairhaill says if the development goes ahead, the extension would run right past Horden Lake and further improve the capital and operating cost base of the project.
“Anything to lower the burden on individual companies is supportive of development,” Fairhall says.
“It’s clear that Québec is positioning to be a globally competitive hub for critical metals extraction and processing.”
Société du Plan Nord’s Northern Action Plan has four key goals, which are to increase connectivity to Nord-du-Québec, build on northern economic strengths, stimulate community vitality and preserve a unique environment.
The upgrades to the Matagami transshipment yard infrastructure will run from May to late October 2025.
This week Mining.com.au explores in more depth the Canadian resources sector in the May Two-Four series, which coincides with Victoria Day in Canada.
Write to Angela East at Mining.com.au
Images: Q2 Metals & Emplois en régions
